GST Refund on export of Exempted Goods or services

By | March 25, 2019
(Last Updated On: March 25, 2019)

GST Refund on export of Exempted Goods or services ? छूट वाले सामान के निर्यात पर जीएसटी रिफंड

[Also Refer GST Refund : Free Study Material ]


As per Para No 6 of Circular No 45/19/2018 GST Dated 30.05.2018

6. Whether bond or Letter of Undertaking (LUT) is required in the case of zero rated supply of exempted or non-GST goods and whether refund can be claimed by the exporter of exempted or non-GST goods?

6.1 As per section 16(2) of the IGST Act, credit of input tax may be availed for making zero rated supplies, notwithstanding that such supply is an exempt supply. Whereas, as per section 2 (47) of the CGST Act, exempt supply includes non-taxable supply. Further, as per  section 16(3) of the IGST Act, a registered person making zero rated supply shall be eligible to claim refundwhen he either makes supply of goods or services or both under bond or letter of undertaking(LUT) or makes such supply on payment of integrated tax.

6.2 However, in case of zero rated supply of exempted or non-GST goods, the requirement for furnishing a bond or LUT cannot be insisted upon. It is thus, clarified that in respect of refund claims on account of export of non-GST and exempted goods without payment of integrated tax; LUT/bond is not required. Such registered persons exporting non GST goods shall comply with the requirements prescribed under the existing law (i.e. Central Excise Act, 1944 or the VAT law of the respective State) or under the Customs Act, 1962, if any.
6.3 Further, the exporter would be eligible for refund of unutilized input tax credit of central tax, state tax, union territory tax, integrated tax and compensation cess in such cases

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